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“I Don’t Like All Those Fees” Pragmatism About Financial Services Among Low-Income Parents

Author

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  • J. Michael Collins

    (University of Wisconsin-Madison)

  • Sarah Halpern-Meekin

    (University of Wisconsin-Madison)

  • Melody Harvey

    (University of Wisconsin-Madison)

  • Jill Hoiting

    (University of Wisconsin-Madison)

Abstract

Basic financial services facilitate people’s ability to manage their finances, save, and receive payments from employers or the government. Drawing on survey data as well as qualitative interviews with 80 mothers with limited incomes, we find that parents take a pragmatic view and use a wide range of financial services to meet their needs including fintech, prepaid cards, and mobile phone-based solutions, as well as traditional banks. Mistrust in institutions is an important factor in shaping the services mothers avoid. Structural factors, like employers’ payment methods, also play a role in financial service use. These low-income parents of young children are actively using a range of financial services, much broader than those provided by traditional banks. Many mothers engaged in complex financial management practices to receive income and pay their bills. This opens room for potentially costly errors and is, at least, taxing their cognitive bandwidth. Researchers must attend to the diverse set of financial services with which parents engage and investigate how this affects families’ financial wellbeing and inclusion.

Suggested Citation

  • J. Michael Collins & Sarah Halpern-Meekin & Melody Harvey & Jill Hoiting, 2023. "“I Don’t Like All Those Fees” Pragmatism About Financial Services Among Low-Income Parents," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 807-820, December.
    • Handle: RePEc:kap:jfamec:v:44:y:2023:i:4:d:10.1007_s10834-022-09873-w
    DOI: 10.1007/s10834-022-09873-w
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    References listed on IDEAS

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